A “recession proof” sector? Cosmeceutical industry discusses COVID-19 ramifications
06 Jul 2020 --- The COVID-19 fog has not yet lifted, however the many industries affected by the lockdowns, including the beauty-from-within segment, are attempting to forecast its potential ramifications on the economy. Despite e-commerce reportedly experiencing a significant rise, a drop in sales numbers has also been noted. On the other hand, increased interest in supplements is also boosting the beauty supplements sphere, which has historically been dubbed “recession proof.”
“With the current COVID-19 anxiety and the detrimental impact of stress and a lack of sleep on overall skin appearance, natural ingredients are rising in popularity,” Isabel Gómez, Global Marketing Manager, Nutraceutical Ingredients at Lubrizol Life Science, tells NutritionInsight.
“The supplement segment in general has not suffered much from the pandemic. In some cases, it has benefited directly or indirectly. Consumers are increasingly aware of how their diet affects their health, which is why most of them decide to take beauty supplements. Specifically, amid COVID-19, there has been a focus on caring for skin, hair and nails by spending prolonged periods at home and having reduced access to salons, which brings a bright spot for beauty supplements,” Gómez explains.
According to David Tetzlaf, Director of Marketing at Evolva, the cosmetics and toiletries market is experiencing a sharp drop in sales in the US. “However, there may be some segments expanding in certain categories due to at-home beauty treatments and online purchasing, as part of new self-care rituals and routine during quarantine. Since many consumers are under quarantine at home and unable or unwilling to go to spas and salons because of either reduced personal budgets or temporary closures, there is an increased demand for beauty regimens that can be easily experimented with while at home.
“It seems that despite the pandemic, consumers are still interested in beauty and anti-aging supplements,” Torsten Grothe, Head of Food & Health at Mibelle, tells NutritionInsight.
The pandemic’s impact
Indeed the beauty-from-within space has been growing, even before the pandemic broke out. Ingestible beauty is having a moment and several major players have realized the trend’s potential. This follows Innova Market Insights crowning “Eat Pretty” as one of its top ten trends of 2020. Moreover, according to a 2019 Innova Consumer Survey, one in three Chinese consumers increasingly opt for food and beverages that support physical appearance.
NutritionInsight previously reported on the trending ingredients, applications and ingredient synergies. The link between nutrition and beauty is now more pronounced than ever, according to experts in the field.
The COVID-19 fog has not yet lifted, however the many industries affected by the lockdowns, including the beauty-from-within segment, are attempting to forecast its potential ramifications on the economy. “The supplements segment has historically been found to be ‘recession proof.’ Our research indicates that although certain companies might suffer a decrease in sales, for those counting on a solid e-commerce structure and strong digital marketing, the hardship will be considerably less. Or even witness growth, as is already being observed in the Chinese market with many Healthy Beauty businesses,” Florencia Moreno, Market Analyst at Rousselot Health & Nutrition asserts.
According to Innova Market Insights data, growth in F&B launches featuring skin health claims has risen by 58 percent from 2017 to 2019. Top market categories in F&B and supplements NPD tracked with a skin health claim include Supplements, Soft Drinks, Sports Nutrition, Baby & Toddlers and Snacks (Global, 2019 versus 2015). The fastest growing market category is Supplements, with a CAGR of 26 percent. At its heels are Dairy and Alternatives, Snacks and Hot Drinks with 23 percent respectively and Sports Nutrition with a 15 percent rise (Global, 2015-2019).
“The beauty industry is shifting in the COVID-19 reality. Consumers are taking their beauty routines from salons and spas into their homes, and purchasing products such as mani/pedi sets, at-home facial devices and masks, and hair kits. There’s also renewed awareness of the link between beauty and wellness, with consumers incorporating new nutrition and supplementation routines into their wellness and beauty journeys,” Laurentia Guesman, Product Manager, Carotenoid Formulations at Lycored, tells NutritionInsight.
As the COVID-19 implications cannot yet be fully understood, it remains to be seen how exactly industry will be affected. Until the pandemic has concluded its march, its effects on the industry and profits are up for debate.
By Kristiana Lalou
